UniCredit Increases Stake in Commerzbank, Approaches Mandatory Offer Threshold

Italy's second-largest bank by assets, UniCredit, has increased its stake in German rival Commerzbank to 28%, approaching the 30% threshold that would trigger a mandatory takeover bid under German regulations. This move builds on UniCredit's previous efforts to raise its share in Commerzbank, reigniting expectations for a potential mandatory takeover offer.

On Wednesday, UniCredit announced that it had acquired additional financial contracts linked to Commerzbank shares as part of a process to increase its stake to 29.9%. Since announcing its interest in a potential merger and revealing its stake in the German group in September, UniCredit has been actively pursuing Commerzbank.

Following this, it further increased its ownership by entering into financial contracts tied to Commerzbank shares. UniCredit's CEO, Andrea Orcel, is working on a merger to expand UniCredit's presence in Germany and enter the Polish market. However, the political opposition from the German government, which holds a 12% stake in Commerzbank, along with upcoming elections, has delayed this process.

According to UniCredit, the current holding comprises approximately 9.5% direct ownership and about 18.5% through derivatives. The bank stated that this move reinforces its belief in the significant value that needs to be realized at Commerzbank.

Commerzbank, a significant lender for small and medium-sized enterprises that consistently supports an independent strategy, declined to comment on this development. The group is set to present the details of its new strategy in February.

Following the news, Commerzbank's shares rose by up to 4% at the opening of European markets.